Depositing capital in a business account?

[Lori Cooke]

Hi guys. I'm still in the "learning" phase of my investment journey. Although I have a lot of capital already, and plan to save even more in 2019, I wanted to know - are there tax advantages/disadvantages of opening a corporation/LLC and business account from the very get-go to merely hold this capital until I'm ready to purchase? I have 1 property that I'm renting out currently but I rented this house out before I wanted to pursue real estate as a business. So that property has been a guinea pig of sorts to learn the land-lording process. The income collected from that property has just been deposited in my personal checking account.

I know that starting out, the best thing we can do is to spend our time finding the deals. Believe me, that's where most of my effort is going. But seeing as I'm a type A personality, I'd like to get my finances correct from the start. :)

Thanks for any information anyone can provide!

[Terrell Garren]

@Lori Cooke There are some really smart financial experts on BP that I will defer to regarding tax advice. Regarding risk, I like the rule of thumb to use an umbrella policy to protect personal and investment equity < $1M, then form an LLC to for additional protection once > $1M in total wealth.

Best, Terrell